Letting agent Barrows and Forrester has identified how eco-improvements can add value to properties.
Insulation - Upgrading a home’s insulation, specifically solid wall insulation, is one of the best ways of improving efficiency and reducing energy usage. It costs an estimated £2,750 to do but can boost property value by three per cent. Based on the average UK house price of £273,762, this equates to £8,213, adding value to the tune of £5,463. This makes it the most profitable eco-friendly upgrade available to homeowners when it comes to adding value to their home, as well as reducing their carbon footprint.
Electric car charging port - Despite the increasing popularity of electric and hybrid cars, it’s still very rare to find a home that comes with its own charge point. Installation is relatively inexpensive, around £800, and can add around 1.5 per cent to the home’s value, adding £3,306 in value.
Boiler upgrade - Many homes can still benefit from a boiler upgrade. While notoriously expensive to do, around £2,500, the increased efficiency and longevity that a new boiler provides adds around 1.9 per cent to the home’s value, adding £2,701 in value.
Tankless water system - Similarly, if a home uses a tank system for its hot water, in which it uses a large tank to store large amounts of water that must then be heated every time hot water is required, it’s a very good idea to replace it with a tankless heater system. Doing so costs around £1,275 but adds 1.2 per cent to the property’s value, a boost of £1,984.
Double glazing - Fitting double-glazed windows throughout the home is very expensive, costing an estimated £6,575. It is, however, an essential step towards creating an energy-efficient and warm home and is so important to homebuyers that the improvement adds to the value of a property. Measured against the cost, this brings an added value of £1,638.
LED lighting and roof repairs - Increased efficiency and good profits can also be added through installing energy-efficient LED lighting throughout the home (£1,069 profit), and addressing any faults or weaknesses with the roof (£987 profit).
Solar panels - One outlier is solar panels. Despite being one of the most common ways of improving the carbon footprint of a home, it seems they do very little in terms of added value. Installation is expensive, around £5,875, while the value added is estimated to be £1,916, a loss of £3,959. However, there are obvious savings to be made from reduced utility bills, so if the owner is planning to stay in the home for many years to come, solar panels can still offer good savings.
“Eco-friendly home renovations and upgrades can be a brilliant way of reducing the running costs of your home, which is something that has been brought into focus due to the spiralling cost of living. But they don’t just reduce the day to day costs associated with our homes, they can also add value for such a time that you do come to sell” says Barrows and Forrester managing director James Forrester.
“In addition to the financial benefits they bring to the home, they can also help us make a positive change with regards to the environment and this eco-friendly conscience is something we are seeing more and more from the modern-day homebuyer.”
The analysis was done using HM Land Registry data and property improvement websites.